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Hewlett Packard Case #2 Essay

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2. What do you think of the way the team set out to find a market for the Kittyhawk? What correct turns and what wrong turns did they make?

When setting out to find a market for Kittyhawk, there were several correct and incorrect decisions that the DMD division made that greatly affected their product and its future effectiveness. They initially went about it the right way by researching the electronics industry and the several companies within the industry that might want their new product. They also spent time analyzing HP’s future product plans and how they aligned with that of Kittyhawk’s. They looked into businesses where their innovative and disruptive product may have a greater demand and be better able to quickly incorporate
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At the show, they bypassed the desktop and notebook computer sections, which were established markets that could have taken advantage of Kittyhawk. Although searching for a “new hill” to establish their market is a good idea to get a first-mover advantage, there are high demand risks when focusing solely on unproven markets. Instead of focusing on such unproven markets, DMD should have created their product so it could be variable enough to adjust to different consumer needs, which would attract a much wider market.

DMD made the mistake of setting forth goals for Kittyhawk before assessing the market. These goals were not only unreasonable, but they created a lot of pressure on the engineering staff. They set forth a strict deadline of introducing the Kittyhawk in 12 months and breaking even in profits in 36 months. Although this is a good idea to motivate your engineers to beat the competition and achieve a first-mover advantage, the engineers instead sacrificed aspects of the product that were critical to its success and were part of the original goal. In order to lower the price of the product as much as possible to satisfy customers, they sacrificed some of the promised capabilities that set the product apart from the competition. Although there is definitely an innovation and price tradeoff, when HP refused to sell Kittyhawk for less than $130, it was a clear indication of how they had moved so far away from their original goal
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